Arsenal cut debt as property sales boost profit

English Premier League team Arsenal slashed their borrowings at a time when rival clubs are struggling with rising debt and posted a 44 per cent rise in first-half pre-tax profit.

The club said yesterday pre-tax profit rose to £35.2 million in the six months to Nov. 30 from £24.5 million a year ago, boosted by proceeds from apartment sales at their Highbury Square development on the site of the previous stadium.

Arsenal, sitting third in the Premier League, relocated to the Emirates Stadium in 2006 and redeveloped their old ground as a residential complex.

The club said the sale of 261 apartments during the period generated revenue of £96.6 million. Of the 655 apartments on the site, 524 have now been sold and proceeds from the sales has been used to pay down debt, they added.

Arsenal said they cut their total net debt to £203.6 million from £332.8 million a year ago.

The North London's club reduction of their debt is in contrast to the experience of other Premiership clubs.

Manchester United for instance said in January they would launch a £500 million high-yield bond to help refinance the debt taken on by the American Glazer family to buy the club in 2005.

Arsenal said revenue in the football business rose to £100.2 million from £98.4 million on higher UEFA Champions League broadcasting payments.

The club said they would consider investing future surplus cash in club projects and infrastructure both in and around the Emirates Stadium.